CLUE Reports: How Past Water Claims Follow a House

What is a CLUE report and does it show water damage claims?

A CLUE report is a claims history record that insurers use when they price or write a home policy. The record is tied to the property and to the people who made claims, which is why a water loss can follow a house to its next owner. Ask your agent which report the insurer pulled and what it listed.

This site is not an insurer or a credit bureau, so it cannot pull or explain a particular report. It can explain what to ask, which consumer-rights pages apply, and how to protect yourself as a buyer or a claimant. What a report holds, and for how long, is set by the company that issues it, so check that company's own pages and not a forum answer.

Water damage matters here because it is a common claim. The Insurance Information Institute (Triple-I) says about one in 60 insured homes has a property damage claim for water damage or freezing each year. See the water damage insurance claim guide for the filing steps.

Why do past water claims matter to a buyer or an insurer?

A past claim tells an insurer a house has had a loss, and it may change whether a policy is offered or what it costs. Triple-I says average claim severity for water damage and freezing was $15,400 for 2019 through 2023, which is why insurers pay attention to the category.

Triple-I also reports that water damage and freezing made up 22.6 percent of homeowners insurance losses in 2023. For a buyer, a past water claim does not mean the house is a bad purchase. It means you should ask what failed, who fixed it and whether the repair was finished and dried properly.

The table is a set of questions, not a ruling. How a given insurer treats a history entry is its own decision, and California regulates how claims are handled but does not fix how every insurer prices.

How do I get a copy of my own claims history report?

Ask the report company directly. LexisNexis Risk Solutions says you can request your Consumer Disclosure Report online or by mailing a printable request form, and it lists a Consumer Center line at 1-888-497-0011. The request needs your Social Security number or your driver's license number and state.

That LexisNexis page describes the Consumer Disclosure Report, and it does not spell out every report type the company sells. Before you rely on it, confirm with the company that the copy you receive includes property claims history. The LexisNexis request page lists the options.

The Consumer Financial Protection Bureau says you can request your consumer reports from specialty consumer reporting companies, not only the big credit bureaus. It also says you have the right to see and act on your data, in its credit reports and scores guide.

What should I look for when I read the report?

Check that every entry belongs to your address and your name. Compare each one with your own records: the claim date, the cause of loss and whether a payment was made. An entry that looks wrong, such as a claim on a house you did not own then, is worth a written dispute.

Water claims need a close read because one event can be recorded in more than one way. A leak, the emergency drying and the later rebuild may be separate steps, and an entry may not tell that story. If the report lists a cause that is wrong, such as a plumbing leak recorded as flood, ask what changed the record.

• Address. Is it your property and not a neighbor's or a prior unit number?
• Date. Does it match your photos and paperwork?
• Cause. Does the stated cause match what you reported?
• Payment. Was something paid, or was it only an inquiry or a closed file?
• Owner. Is the claim from before you owned the home?

How do I dispute a wrong entry?

Contact the report company in writing and name the entry, the reason and the proof you attach. LexisNexis lists a correction line at 1-888-217-1591, plus mail and its Help page. Keep copies of what you send.

The company says it provides a Description of Procedure Letter that is personal to your dispute request, which explains how it handled the case. If it does not fix a real error, the CFPB's guide on how to dispute an error on a credit report is a general reference, though that page covers credit reports, not property claims reports.

Your insurer can also help. If a claim was closed without payment, or a report shows a loss you never filed, ask the insurer that supplied the entry to confirm it in writing. Send both the company and the insurer your proof, and file a copy of everything with your policy papers.

Can a denied application earn me a free report?

Possibly. The Federal Trade Commission says federal law gives you a free report after an adverse action notice, such as when an application for credit, employment, insurance or housing is denied. If an insurer turns you down or raises your rate and cites a report, ask in writing which one it used.

The FTC also notes that credit bureaus sell report information to businesses that may offer you insurance, or rent you a home. Its guide on free credit reports explains the adverse action rule. It does not mention claims history reports by name, so ask the insurer which type of report applies to your notice.

Do not guess. Keep the notice, write down the date you received it, and make your request promptly. A short written note to the company, with a copy of the notice, is enough to start.

Should I file a small water claim or pay out of pocket?

Weigh the repair cost against your deductible, and ask your agent how a claim would be recorded before you file. Triple-I says to report losses to your agent or company right away, and the California Department of Insurance says delay in cleanup can allow mold to grow, so do not let the question stall the drying.

The CDI residential property claims guide says to report any water damage claim immediately to your agent or company representative. That is a duty to notify, and an agent can usually tell you the difference between asking a question and filing. Ask in those words.

CDI says mold damage caused by a covered peril may be covered under a homeowners policy, while NAIC says policies often exclude mold. Read your policy's mold wording before you handle a loss alone, and see the mold guide for timing.

1. Stop the source and photograph the damage before cleanup begins.
2. Call your agent and ask how an inquiry differs from a claim.
3. Get written bids with materials and prices listed line by line, as Triple-I advises.
4. Compare the total to your deductible before deciding.
5. Dry the area in the first 24 to 48 hours, as the EPA advises, whatever you decide.
6. Keep every record of the cause, the repair and the drying.

The water mitigation page explains the drying step, and the burst pipe page covers a common cause of these claims.

What records should a seller or buyer keep about a water loss?

Keep the paperwork that proves the loss was fixed: the cause of the leak, the drying records, the repair invoices and any permits. A buyer can ask for them, and a seller who has them can answer questions quickly. Records beat memory when an insurer asks.

If you are buying, read our guide to buying a water-damaged house, which covers inspections and what to request. If the house is insured through the FAIR Plan, read the FAIR Plan page too, since that policy may not cover water damage at all.

California's claim rules also protect you once you file. Under 10 CCR 2695.7, an insurer must accept or deny a claim within 40 calendar days of proof of claim, in writing for a denial. The regulation text sets out the other clocks.

Where do I complain if an insurer mishandles a claim?

Contact the California Department of Insurance. Its consumer hotline is 1-800-927-4357. CDI also takes complaints through an online form or a printable form, and it lists difficulty opening a claim as a reason to call.

CDI's complaint process is about insurers and claim handling. A complaint about the accuracy of a claims history report goes to the report company, so use both channels if both apply. Read CDI's help page before you file, and see the water damage guides for more reading.

Sources: LexisNexis Risk Solutions, consumer disclosure request; FTC, Free Credit Reports; CFPB, Credit reports and scores; Triple-I, Facts and statistics: Homeowners and renters insurance; Triple-I, Settling insurance claims; CDI, Residential Property Claims Guide; CDI, file a complaint; 10 CCR 2695.7; NAIC, Homeowners Insurance; EPA, A Brief Guide to Mold, Moisture and Your Home.